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Lesson 24: Making Money

Mrs. B has a theory. She believes that it is possible to make money in any futures market just so long as a trader follows these four basic trading principles.

  1. Establish a well-defined trading plan.

  2. Know that the use of sound money-management policies will be essential to the operation of your well-defined trading plan.

  3. Know that conquering your own emotions will be essential to the success of your well-defined trading plan.

  4. Know that your well-defined trading plan may be a 'market approach' or a 'methods approach' or it may be a combination of the two.

That is basically it for Mrs. B. There are some refinements and there are some accessories but these four principles are the basic foundation stones on which Mrs. B wishes to build her house of success in commodity futures trading. Mrs. B believes that most traders fail in commodity futures, options contracts, and equity investments because they forget to similarly construct their investment portfolio on such corner stones.

Let's look for a moment at the theory of gravity. To test whether that theory is any good, all one has to do is to throw an object into the air and watch it fall back to the ground. It should matter not whether one throws up a feather or a bowling ball. Each should fall back to earth. If one does not, the theory of gravity works only some of the time.

Mrs. B is willing to test her theory too and to do this she needs your help. She will attempt, using the above four principles, to make a profit trading any market available for trading. It is true that Mrs. B could pick a market herself and attempt to prove her theory on her own but she believes it is better if her readers pick the market for her that they would like her to trade.

Mrs. B will be using a 'methods approach' to making a profit from the market selected by her readers. She feels comfortable with this decision.

Is it possible that Mrs. B is right? Is it possible that in an investment arena where more people fail than succeed, and where the risks of loss are substantial that Mrs. B can be successful using these four principles,

  1. Establish a well-defined trading plan.

  2. Know that the use of sound money-management policies will be essential to the operation of the well-defined trading plan.

  3. Know that conquering one's emotions will be essential to the success of the well-defined trading plan.

  4. Know that the well-defined trading plan may be a 'market approach' or a 'methods approach' or it may be a combination of the two.

Is it possible that Mrs. B can be successful using just these four principles? This we are going to find out in upcoming lessons. For now, what Mrs. B needs is your help. She needs for you to send her a recommendation as to the market you would like to see her trade. Remember that she is going to start with trading futures contracts only. She may later trade options contracts and she may later purchase equities but for now she is limiting herself to the trading of futures contracts only.

It matters not to Mrs. B whether her readers ask her to trade corn futures, or silver futures, or cotton futures or index futures. Mrs. B is going to try to establish a well-defined trading plan for whatever market she is asked to trade and attempt to trade that well-defined trading plan by using sound money-management practices and by conquering her personal emotions.

Now it is up to you. What market would you like to see Mrs. B trade as these lessons proceed? To contact her simply click on her mailbox below. Send her an e-mail and let her know what futures contract you would like to see her trade and, if you care to, perhaps give her the reason why you would like her to trade that particular market. Mrs. B is waiting to hear from you. She is eager to begin.

To send Mrs. B your thoughts by e-mail on the market you would like her to trade along with any reasons why, click here or on her mailbox.

Mrs. B's Maibox

After sending Mrs. B your thoughts, suggestions, or observations, you may then proceed by clicking here.

 

Bruce Gould

Always remember that stock, options, and futures trading may involve substantial risks and that past performance is no guarantee of future performance.